May 16

Funds Could Pay Up To $500,000 For Trio Compensation

The Federal  Government has revealed the cost to superannuation funds to cover the $55 million dollar financial assistance package granted to some victims of the Trio collapse.  This follows the announcement in April 2011 by the Assistant Treasurer, Bill Shorten that the Trio trustee would receive compensation by way of a levy on other regulated funds.  He indicated that investors in super funds regulated by the Australian Prudential Regulation Authority (APRA) deserved to be compensated, by the Government, if they lost investments through fraud.  However, trustees of self-managed super funds (SMSFs), which are regulated by the ATO, will not receive compensation as they are not charged a levy.

The government has announced the levy will be calculated using a fund’s assets, with the maximum levy set at $500,000 and a minimum of $50. 
 

 

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